A so-called “MEGA” package of state tax incentives — to try to lure a major business development to Iowa — stalled in the House on the final day of the 2023 legislative session.
The “Major Economic Growth Attraction” or MEGA program would have been for a project that covers at least 250 acres and involves at least a billion dollar investment from a business engaged in research, bioscience or advanced manufacturing. The plan cleared the Senate on a 45-2 vote Wednesday, but House Speaker Pat Grassley said there were too many unanswered questions.
“I’m not convinced the proper legwork went into selling the program to the House members,” Grassley said today, “obviously not even enough that on the last day of session they were comfortable to bring it up.”
Under the proposed MEGA program, a business based in a foreign country that’s an ally of the U.S. would be allowed to buy farmland for the project. House Republicans were wary of granting foreign ownership of farmland and Grassley suggested the size of the tax rebate — nearly $93 million over the next seven years — was a concern.
Grassley said lawmakers might reconsider the package next year. “I think it was a lot of factors at play and if it were to move forward, I think we got some pretty good guidance from the membership what they would want to see as part of it,” Grassley said during taping of this week’s episode of “Iowa Press” which airs tonight at 7:30 on Iowa PBS.
Lawmakers who led debate of the package in the Senate said it would help Iowa be competitive with other states are offering bigger incentives for large projects. The MEGA program would have been limited to two projects over the next two years.